Omron 2009 Annual Report Download - page 39

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37
Yoshinori Suzuki
Managing Officer
Company President
Automotive Electronic Components Company
What’s New
Business Strategy and Outlook for Fiscal 2009
Establish an effective fixed-cost structure for bottom-
level automobile production conditions
We forecast net sales declining 26.9% year on year to
¥60.0 billion and operating income reaching the breakeven
point in fiscal 2009.
We anticipate extremely severe market conditions in
the first half of fiscal 2009, with new car sales declining in
Japan and slow recovery for consumer spending in the
United States, the largest automobile market. We forecast
first-half sales falling 43.6% from the still-strong sales level
of the previous fiscal year. We do not expect a speedy
recovery in automobile sales; however, automakers will
have made progress in reducing inventory levels. Thus, we
forecast second-half sales to decrease 0.6%, a slight reduc-
tion from the second half in the previous fiscal year.
AEC’s global sales have risen rapidly with the expan-
sion of the automobile market. However, conditions in the
automobile market have taken a dramatic turn for the
worse. Automobile demand has plummeted and leading
automakers in the United States have filed for bankrupt-
cy. In these severe conditions, AEC will focus on revising
its operating structure and rebuilding its earning strength.
Management is focusing on constructing a fixed-cost
operating structure that will function effectively with auto-
mobile production volumes at their lowest levels. Specific
measures will be to focus on providing products for small
cars and environmentally friendly vehicles; improving our
supply of highly-integrated modules and related software
technology needed for advanced production technology;
expanding operations in low-cost production regions, such
as in China and Thailand; and restructuring the North
America production bases.
We decided to spin off AEC in April 2010 in an effort to
improve its earnings and to develop it into a business that
specializes in electronic equipment used in auto bodies.
We plan on quickly adapting to market needs by applying
our proven knowledge and expertise in this field and through
our active, yet agile collaboration with other companies.
Multifunction Control Units
Multifunction control units combine several
functions, such as windshield wipers and
door locks, into a single control unit. The
units reduce the amount of wires used, save
space, and reduce vehicle weight.
Battery Cell Monitor Units
Cell monitor units gauge the voltage and
temperature of batteries in electric vehicles.
Battery module
Electric Power Steering Controllers
Electric power steering controllers facilitate
automobile steering. Electric (motorized)
power steering systems are more fuel effi-
cient than conventional hydraulic steering
systems.
Passive Engine Start Systems
Passive engine start systems enable car engines to be
started or shut down without handling the transmitter key
but by pressing a switch from the driver’s seat of a car.
Passive entry & push start (PEPS) systems
for enhanced convenience and security
AEC has expanded the functions of keyless entry systems into a dual passive entry
& push start (PEPS) system. PEPS combines a passive entry system enabling auto-
mobile owners to lock and unlock doors without taking the portable remote transmitter
(key fob) out of one’s pocket or bag, instead allowing them to simply touch a button on
the car door. Also, the passive engine start system starts and turns off the car engine
by pressing a switch on the driver’s side of the dashboard.
Combining the locking systems and engine on/off functions demands a high-
precision security function. Backed by many years of developing and marketing
wireless technology, AEC has been able to develop precision technology that allows
the transmitter key to lock and unlock the door only when the key is outside the car
and to start the engine only when the transmitter is detected inside the car.
AEC continues to hone its wireless technology to provide products that will further
enhance convenience and security.
Transmitter Key
Transmitter Key
Passive Entry Systems
Passive entry systems enable car doors to be
locked and unlocked without handling the
transmitter key but by pressing a switch on the
door or door handle.